Setting a financial goal for the new year is very common and with good reason. A recent survey revealed that 77% of Canadians are aren’t abble to cover an unexpected $500 expense without going into debt.
Achieving financial success looks different for everyone. One person might see success as wiping out their credit card debt. Another person might see it as building their savings. Yet another person might want to improve their credit score. All of these are fantastic goals. Goals worthy of taking top priority on anyone’s list in 2026. However, setting a goal is one thing, but sticking to it is another story.
Setting New Year’s resolutions you’ll stick to is almost an art form, especially when it comes to money. We’re walking through all the steps needed to choose a New Year’s financial goal, put a success plan in place, and then turn that goal into reality.
Determine what you want
There isn’t really any right or wrong when it comes to deciding what financial goal you want to set for yourself. The only real misstep is not having a goal. If you don’t tell your money where you want it to go, it’ll go where it wants to go. Unfortunately, more often than not, money doesn’t have a track record for wanting to go places that have a hand in bettering your financial situation.
Some people will find this step easy; they’ll know right off the bat what goal they want to go for. Others might have a harder time with this step. The sheer number of options makes it difficult to know the best move forward. For those people, it may help to ask yourself a few questions:
- How financially stable are you? For example, are you able to cover your bills each month comfortably? Do you have a financial cushion to carry you through an unexpected financial emergency?
- Do you foresee wanting to make any big changes in your life in the next couple of years, especially the next year?
- Do your spending habits currently reflect the values? If not, how can you make changes so that they are more aligned?
The answers to these questions will help narrow down what goal(s) you’d like to achieve.
Common goals
Some of the most common financial resolutions are:
- Gaining a better understanding of your credit report
- Setting up and revising your personal budget
- Paying down debt
- Saving and investing
- Procuring appropriate insurance
If any of this feels overwhelming, that’s okay. You’re not alone. Many people can find this process a little overwhelming. Don’t give up. There are ways to get through. A lot of people find it helpful to reach out to a financial expert, like a Certified Financial Coach or Credit Counsellor.
Set SMART goals
It’s best if your New Year’s financial resolution are smart. I don’t mean smart as in brainy. I mean smart as in the term coined by Peter Drucker.
Smart resolutions are:
- Specific
- Measurable
- Achievable
- Relevant
- Time-bound
They aren’t just ideas, and they aren’t vague ambitions. They are well thought out with clear benchmarks and key performance indicators.
Here’s a good example of a smart goal:
Pay off $10,000 in credit card debt by the end of the year.
This resolution is specific. It’s not a vague resolution like, “finally get a handle on my debt.” It’s a specific number to aim for: $10,000.
This goal is measurable. Tracking this goal would be reasonably easy. It would just be a matter of taking note of the debt total on January 1st and then tracking all the payments (and charges) made on the debt throughout the year.
Depending on a person’s situation, this goal could be achievable. Looking at your budget, is it realistically attainable? It’s okay, even a good thing, if the goal is a bit of a stretch. A goal that’s too far of a stretch, though, can actually be more counterproductive than helpful. They can make you feel defeated before even getting started. Aim for middle of the road stretch.
There aren’t many scenarios when paying down credit card debt isn’t relevant, other than if someone doesn’t have any debt, of course. The only other case it wouldn’t be relevant is if someone is facing a huge emergency where the money is needed for basic needs.
Finally, setting a year as a deadline makes this resolution time-bound.
Tips for sticking with your New Year’s financial goal
Clarify Your Why
To keep on track to achieve your resolution, it’s helpful to consider your intention behind that specific financial goal. For example, if paying off credit card debt is your goal, it might be because you want:
- To feel more financially secure
- More room in your budget to save for your future
- Relieve yourself of the stress you feel daily because of financial pressures
Figuring out why you want to achieve your goal will help you stay motivated throughout the year.
Break it down
If your New Year’s financial resolution is a big one, it’s important to break it down into small, manageable chunks. For example, if you want to pay off a large debt, figure out how much you need to pay off by quarter and by month.
Breaking down your goal will help you stay on track, and I will also give you a series of small wins to boost your enthusiasm for accomplishing your goal.
Reward yourself
Setting and accomplishing financial resolutions is hard. It requires discipline and patience. It’s helpful to reward yourself as you reach your smaller milestones along the way. Studies have shown that marking these milestones, even in a small way, goes a long way to keeping you motivated and ultimately succeeding at achieving your goal.
Grace and commitment
Arguably, the most effective, yet underrated, advice for sticking to your goal is to stay committed, but give yourself some grace. Commit to the goal fully, knowing that you will likely stumble, but that’s okay. When that happens, first and foremost, be kind to yourself. Don’t be hard on yourself about it. Instead, acknowledge it and then get back up and guide yourself back on track.
Wrap up
The New Year brings with it a feeling of celebration and a fresh start. An ideal mindset for beginning new goals and habits. Financial goals are particularly significant because the health of our finances affects all other parts of our lives. By choosing a value-based, SMART goal and utilizing the tips to stick to it, you’ll see that you’re setting yourself up to succeed.
Decided that paying off your debt is the right goal for you? We can help! Our Credit Counsellors will go over all the debt-relief options available and then make a recommendation as to which one is the best for you based on your financial situation. Call for a free, no-obligation consultation.
